Real Estate Search and Sale LLC

Property Insurance Laws have changed in many states such as Maryland.

 Maryland recently passed a bill that states that the master insurance policy of condominiums and homeowner associations do NOT have to cover the individual units.

 Property owners are under the false assumption that they are covered.  They are NOT. 

Since the law has been passed stating that the master insurance policy does not have to cover unit owners, associations are filing for changes to their policies in record breaking numbers.

If you are not sure if you are covered under your master insurance policy, as your association to send you something in writing.

 I will work to get a bill passed that requires all associations to notify owners of any changes to their insurance policies.

 As always, your feedback, insight and support are appreciated.

Without the proper property insurance all of your assets may be at risk.

Finding a good Realtor is a challenging task. 

 Agents that market themselves well are often perceived as “top agents”.  Top at what?  Top sales?  Okay, top sales for 2002?  Top sales for last month? 

It is simply a matter of spin.  Just like data from many charts and graphs.  You can take most reports and ask a question from a different perspective and get entirely different results.

 Hear is our secret to finding outstanding agents.  We look for agents that are active in their professional communities, who take the time to sit on boards and commissions.  An agent that is involved professionally is more likely to be in touch with market trends, laws and opportunities for their clients.

 We review their experience with prior clients.  We take the time to talk to their prior clients.

 We find that most buyers and sellers don’t take the time to call and verify the agents’ references.

 They are told to go out and interview three agents.  So they do and they end up with the agent who convinces them that they can sell their property for the highest price.  Great, they are great at sales, but the sad fact is that unless you live in a small town, or the property is in a niche market, it is unlikely that the same agent will bring in the buyer.

 Therefore, the only person the agent is selling is you.

 This does not get properties sold.

 Buyers’ agents and listing agents have two separate skills.  A buyer’s agent needs to be available to research and find great deals.  They have to be available anytime night or day to jump on an opportunity and write a contract.  In some states in can take hours to write a contract.  The agent needs to be willing to stay awake and do the work until it is done or another agent can get their contract accepted first.

 Think that it doesn’t happen in this market?  Think again. There are opportunities in every market. 

 Both the buyer’s agent and listing agent have to be pleasant and tough negotiators.  If they are not kind and they are not respectful, it is less likely that their contract will get accepted if they are a buyer’s agent or their property will be shown if they are a listing agent.

In addition both agents need to know real estate law and contracts.  They also have to have experience.  I can look through correspondence on numerous deals and point out where there could have been problems if the agent did not have experience. - In fact I will post them in future blogs.

 Aside from the skills mentioned, the listing agent needs to have serious marketing skills.  They need to create a buzz about a property before it is listed for sale or rent.   

Part of marketing a property is the packaging.  A property may have issues, but if it presents well then it is more likely to sell.  Consider a gift wrapped in beautiful paper and a hand tied bow.  The gift could be modest, but the mental anticipation has shifted. 

 Studies have found that when the same gift is given to different people, more people are pleased with a gift which is well presented. 

 Why do people take the time to look good for someone else, or before they go to a meeting.  It is all perception.

 Real Estate Search and Sale is available to help you locate a real estate agent at no charge.  In fact, if you select a Realtor from our network we will give you $100.00

How does this work?  Highly qualified agents have contacted us and would like to work with our clients.  In fact, they pay us a portion of their commission to work with you.

Why? 

1). Agents want to work wit clients who know that they are prescreened.  This sends a message to the client that this agent has shown some level of skill and experience.

2). Agents are often good at selling property but not themselves.  As noted above, some agents who sell themselves are not great at selling property.  We all have a vested interest in helping you.

3). Agents love to work with us.  We are experienced agents and are involved in our communities.  We appreciate what it takes to be an agent that goes above and beyond for our clients. 

4). Agents know that once you meet with them, work with them and obtain your goals that you are likely to use them again and refer everyone you know.

We only benefit if you are happy.  Our system also relies on referrals from you.  Therefore it is in our best interest to ensure your satisfaction. 

The Maryland Departement of Assessments has told me that it is NOT a good idea to file an appeal in writing, as they may misinterpret the documentation the way the the appealant had intended.

 I sent a copy of my property listing.  The property was listed for $410K.  I bumped up the purchase price to $438,500 so that I would have some money to replace the roof and the deck, regrade the property on both sides of the house where water was coming in and fix some major plumbing issues.

I neglected to state this in my letter.  I thought that the fact that I had just purchased a property that had been on the market for 59 days would demonstrate that I had paid fair market value.  I was not dickerying about the value between the list and what I paid.

 I was told by the assessment office that the listing remarks stated that the house was listed under market and that it was a fantastic home.  I said that the house would be listed under market for a home in top condition.  I thought that the agent had stretched the remarks a bit and that this was not uncommon and that many agents stretch this a bit- especially in this market.

I said that it is a fantastic home, but it needed about $50K in work, removing the old deck and gutting the basement before the house was livable.

Me: The remarks also stated that it was being sold “as is”. 

The assessment manager: most remarks state this now. 

Me: It was mainly the bank owned properties and short sales that were being sold ”as is”. 

If a home seller wants to get top dollar for his property, it should be in the best possible condition and it should not be advertised ”as is”.  For this the manager said nothing.

 I asked her about the comparables that were used to assess my home.  I stated that most of the properties were newer and the living space at the time of assessment was much smaller.    She stated the the “compararables” that I had requested and received were not comparables at all, but they were area assessments.

Me: Okay- how does this effect the assessed value that was determined for my home?

Assessment Manager: some of the properties were used for the assessment, not necessarily all of them.  

Me: Okay, which ones were used.

 Assessment Manager:  I don’t know until the rest of the paperwork that you requested comes to my desk.

Me: I have checked every “area assessement” that was used.  All of the properties were newer than mine and had more living area.  None of them were in the terrible condition that mine was in. 

Assessment Manager: This is why you should never file an appeal by mail.  We had no idea what condition your home was in.

Me: What if I get an affidavit from the listing agent.

Assessment Manager: You should have asked us for a property review before you made the improvements.

Me: This was not stated on the appeals form.

Assessment Manager: That is why you should never file an appeal by mail.

Me: Uggh!!!!!!!  ( you don’t know what you don’t know)

Me: All of the homes on the area assessment were assessed at or below the assessed price, but mine was assessed for $85K above the purchase price.  Can you tell me why.

 Assessment Manager: You do have quite a bit more land than the home that sold around you.

Me: Yes, I took this into account, can you tell me what the difference is in the value of my land compared to the others?

 Assessment Manager: About $20K

Me: This still does not make up for the difference in newer homes with more living space, that are in better condition, but assessed for less then mine.

Me: Can you  tell me what the guidelines are for assessments, as it does not appear to be an appraisal.

Assessment Manager: No, it is a bulk assessment. We take into consideration recent home of similar sizes.

Me: The homes in my area assessment were all larger then mine.  Some were twice the size.

Assessment Manager: I have to wait to see the area assessments that were used before I can make a comment.

Okay, I feel sorry for the Assessment Manager.  I was grilling her.  Frankly, I just don’t understand how there can be such a huge descrepancy between what you just paid for a home and the assessed value, if the home was sitting on the market.

 There is a difference between purchasing a home on a short sale for well below the market and paying market price for a home.

If a home is priced well below market, it will go quickly, as market value is what a buyer is willing to pay under normal circumstances.
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